1995 Federal Budget Briefs

Federal Budget Briefs, 1995

1) No personal income tax increases, but gasoline taxes rise by 1.5 cents per litre.

2) Deficit set at $37.9 billion in 1994-1995, $32.7 billion in 1995-1996 and $24.3 billion in 1996-1997.

3) Annual $560-million subsidy to railways under Western Grain Transportation Act (the historic Crow rate) is eliminated, but farmers given a one-time cash payout of $1.6 billion.

4) Federal subsidies to business to be cut from $3.8 billion this year to $1.5 billion in 1997-1998 - a 60-per-cent reduction.

5) Petro-Canada, Canadian National Railways and the country's air navigation system to be sold to the private sector.

6) About 45,000 civil servants - 14 per cent of the federal workforce - to lose their jobs over three years.

7) New block funding for social programs to replace cost-sharing agreements with the provinces. Overall provincial transfers will be cut by $1.6 billion in 1996-1997.

Maclean's March 13, 1995